Point/Counterpoint: Agency Management Systems

Does an agency need an agency management system?

YES.

Today’s consumers expect to do business with a technology-driven agency. Anything less and they’ll consider the agency obsolete.

Agency management systems are the primary building block of all digital functions in an agency. The return on investment for a management system is realized as agency staff is able to respond without fetching a folder, looking for coverage specifics and organizing paper.

At a minimum, the system’s organization and collection of data in one place empowers the agency beyond manual paper systems. When you consider the implications of data backup and retention for E&O defense, security and meeting client needs quickly and efficiently, the need for an agency management system is obvious. An automated agency provides a wider and deeper consumer experience to more customers with more online opportunities—which enables agency staff to pursue account rounding and top-notch customer service while technology takes care of the back-office data retention, retrieval, marketing, and data analysis and reporting.

The electronic exchange of data doesn’t compare to manual entry. It’s more accurate and more efficient, and it gives agents more consistency when working with their carriers and clients. We’ve moved beyond “this is the way we’ve always done it.” The “connected consumer” of today demands that. Without an agency management system, agents sacrifice vital connection to their carriers and their clients.

—Joyce Sigler, vice president – administration at Jones & Wenner Insurance Agency, Inc. in Fairlawn, Ohio

NO.

An agency management system is no more a necessity to an agency than a Popeil Pocket Fisherman is a necessity to an outdoorsman.

The agency management system is simply a tool that promises to automate workflows, reduce expenses and limit E&O exposures. As agency owners, we like these goals—but the question is not whether we need the system so much as which tool will help our best people do their best work?

As a tech hobbyist, I expect machine learning to integrate into databases, and management systems to free us up to be pure knowledge workers. Our role will be to simply review intelligent system-generated reports to help our clients understand their options. Today, tools can be helpful. But too often, we put them to work inside imperfect procedures, where work-arounds and exceptions become the norm.

To be fair, my agency is unique. We’re a highly focused niche operation that does nothing but high net-worth personal insurance. Agency management systems aren’t really designed for niche focuses—their benefits become more obvious at a larger scale. Scaled up, agency management systems can pay significant dividends. Scaled down, you may find yourself tackling procedures that require more time than necessary, tracking irrelevant data or facing more workarounds than actual workflows.

If you’re an outdoorsman looking to hunt, fish and camp, a multipurpose tool might be just the thing you need. But if you’re a deep-water big-game fisherman, general purpose tools can be quite dangerous. For my agency, the ability to customize and evolve with our clients means we’re better off building and tweaking our own systems.

—Roper DeGarmo, founder of Signature Personal Insurance LLC in Mission, Kansas